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This article first appeared on GuruFocus. Total Revenue: $52.4 million for the first quarter of fiscal 2027. Subscription Revenue: $49.2 million, representing 94% of total revenue. Professional Services Revenue: $3.2 million, including $1.8 million from prioritized engineering services (PES). Non-GAAP Gross Profit: $26.1 million, with non-GAAP gross margin improving sequentially to 50% from 37% last quarter. Non-GAAP Operating Loss: $36.2 million, $8.3 million better than the midpoint of guidance. Non-GAAP Net Loss: $30.7 million, or $0.20 per share. Non-GAAP Expenses: $88.5 million, a reduction of almost $40 million year-over-year and over $17 million sequentially. Free Cash Flow: Positive $2.1 million, compared to negative $34.3 million in the same quarter last year. Cash Position: $651.1 million in cash, cash equivalents, and marketable securities. Bookings Growth: Bookings grew 73% year-over-year, with federal bookings growing 138% year-over-year. Enterprise Agreements: Closed 22 enterprise agreements in the quarter. Annualized Cost Savings: Approximately $135 million achieved through restructuring, including a ~40% headcount reduction. Warning! GuruFocus has detected 7 Warning Signs with AI. Is AI fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bookings grew 73% year-over-year, indicating strong demand and early turnaround success. Federal business bookings surged 138% year-over-year, with notable wins including the US Department of Defense and USDA. Non-GAAP gross margin improved sequentially from 37% to 50% due to cost reduction actions. Generated positive free cash flow of $2.1 million, a significant improvement from negative $34.3 million in the prior year. Achieved annualized cost savings of approximately $135 million through restructuring, including a 40% headcount reduction. Total revenue of $52.4 million declined year-over-year, reflecting ongoing business challenges. Non-GAAP operating loss remains substantial at $36.2 million, though better than guidance. Guidance for Q2 fiscal 2027 revenue ($51-55 million) implies potential sequential decline, indicating uncertain near-term growth. Full-year fiscal 2027 revenue guidance ($210-240 million) suggests a wide range and potential for continued revenue contraction. Management expects non-GAAP gross margin to moderate to mid-40s next quarter due to selective investments in engineering. Q: Federal bookings grew 138% year over year. What was the biggest win, how was it secured, and what does the federal pipeline look like for similar opportunities? A: Thomas Siebel (CEO): The federal pipeline is very strong, driven by high dissatisfaction with an incumbent's product and business practices, which is creating opportunities for us. Additionally, government spending on AI technologies, particularly in intelligence and defense, is increasing significantly, with the defense budget set to rise from $1 trillion to $1.5 trillion. This is generating substantial traction for C3.ai. Q: You mentioned investing more in a forward-deployed engineering organization. What does this mean for C3.ai, and is this a new strategy? A: Thomas Siebel (CEO): We have always had forward-deployed engineers since around 2014. The increased investment is to ensure our existing customers achieve their desired outcomes. While this is a near-term overinvestment, it will be offset in the medium to long run by the efficiency of our C3.ai Code product, which automates data aggregation, pipeline building, and machine learning development without manual coding. Q: How much of the federal opportunity is about displacing incumbents versus greenfield work, and what gives you confidence you can win these deals? A: Thomas Siebel (CEO): We have been displacing incumbents for a while, and this accelerated last quarter. While they are a fine company with a good product, there is a desire among some customers to replace them, which creates opportunities for us. There is also a large amount of greenfield opportunity where we compete and win. The federal sector remains a very good business for us. Q: The high end of the full-year revenue guidance implies a steep acceleration. What needs to go right to hit that, and what gives you confidence? A: Thomas Siebel (CEO): I am less focused on hitting the high end of the guide than on building the pipeline and sales organization to demonstrate consistent quarter-over-quarter revenue growth from Q3 onward. If we achieve consistent growth, free cash flow, and non-GAAP profitability, I believe the company's revenue multiple will expand significantly from its current level of around 3.5x to 10x-25x, which would benefit our investors. Q: Is C3.ai Code a meaningful part of the sales pipeline, or is it still in early marketing stages? A: Thomas Siebel (CEO): We are in the early stages of marketing C3.ai Code, but it is a game-changer. It doesn't require a multi-million dollar initial acquisition, allowing customers to start small and grow. Initial users love it. As an example, we used it internally to replace a substantial, expensive enterprise HR management application. The team built a replacement application in just one day. Q: It seems you are shifting from selling enterprise AI applications to more of a platform strategy. Is that the right interpretation? A: Thomas Siebel (CEO): Yes, you nailed it. In the past, we sold the AI platform and then built large enterprise applications on top of it. Going forward, these applications have been broken down into their atomic particles, which are embedded in the platform. Customers can now assemble these thousands of elements in real-time to create specific applications, either on demand or through C3.ai Code. This represents a fundamental shift in our go-to-market strategy. Q: Can you provide any metrics on customer concentration, such as any customer over 5% or 10% of revenue? A: Hitesh Lath (CFO): There has been no meaningful change from previous periods. We will disclose the appropriate details in our upcoming 10-Q filing, but there is no single customer that stands out as a dominant concentration. Q: Can you elaborate on the key drivers behind the significant improvement in non-GAAP gross margin, which rose sequentially from 37% to 50%? A: Hitesh Lath (CFO): The improvement in non-GAAP gross margin was primarily due to the cost reduction actions we have taken over the last few months as part of our restructuring. We expect the margin to moderate to the mid-40s next quarter as we make selective investments in our engineering organization. Q: What were the main factors contributing to the positive free cash flow of $2.1 million this quarter, and what is the outlook for the rest of the fiscal year? A: Hitesh Lath (CFO): The positive free cash flow was driven by a significant reduction in quarterly cash expenses, resulting from our restructuring, as well as strong collections. For the remainder of fiscal year 2027, we expect free cash flow to broadly align with our guidance range for non-GAAP loss from operations. Q: Can you provide more details on the restructuring plan and the expected annualized cost savings? A: Hitesh Lath (CFO): Our restructuring is almost complete. We have achieved annualized cost savings of approximately $135 million, which includes savings from a roughly 40% headcount reduction across all organizations and a reduction in non-employee expenses. Some of these savings will be fully realized starting in the second half of fiscal year 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Enterprise AI software company C3.ai (NYSE:AI) met Wall Street’s revenue expectations in Q2 CY2026, but sales fell by 25.5% year on year to $52.38 million. On the other hand, next quarter’s revenue guidance of $53 million was less impressive, coming in 8% below analysts’ estimates. Its non-GAAP loss of $0.20 per share was 23.2% above analysts’ consensus estimates. Is now the time to buy C3.ai? Find out in our full research report. Revenue: $52.38 million vs analyst estimates of $52.23 million (25.5% year-on-year decline, in line) Adjusted EPS: -$0.20 vs analyst estimates of -$0.26 (23.2% beat) Adjusted Operating Income: $36,200 vs analyst estimates of -$44.24 million (0.1% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $225 million at the midpoint Operating Margin: -188%, down from -178% in the same quarter last year Free Cash Flow was $2.06 million, up from -$54.76 million in the previous quarter Market Capitalization: $1.61 billion Named after the three Cs of its original focus—carbon, cloud computing, and customer relationship management—C3.ai (NYSE:AI) provides enterprise AI software that helps organizations develop, deploy, and operate large-scale artificial intelligence applications across various industries. Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, C3.ai’s sales grew at a weak 3.6% compounded annual growth rate over the last five years. This fell short of our benchmark for the software sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. C3.ai’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 15.5% annually. This quarter, C3.ai reported a rather uninspiring 25.5% year-on-year revenue decline to $52.38 million of revenue, in line with Wall Street’s estimates. Company management is currently guiding for a 29.5% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. C3.ai is very efficient at acquiring new customers, and its CAC payback period checked in at 23.9 months this quarter. The company’s rapid recovery of its customer acquisition costs means it can attempt to spur growth by increasing its sales and marketing investments. We were impressed by how significantly C3.ai blew past analysts’ adjusted operating income expectations this quarter. On the other hand, its revenue guidance for next quarter missed. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 3.2% to $10.21 immediately following the results. Big picture, is C3.ai a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

Turnaround on track Bookings increase 73% quarter over quarter REDWOOD CITY, Calif., September 02, 2026--(BUSINESS WIRE)--C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal first quarter ended July 31, 2026. "Revenue was $52.4 million, on plan. Free cash flow was positive $2.1 million. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ. Bookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million QoQ. The Company has done exactly what a disciplined, focused turnaround should do. We restructured Sales. We aligned cash outflows with cash inflows. We instituted rigorous expense control. We installed experienced leadership across the board, and we implemented rigorous management discipline across every line of business. Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The plan is working, we are on track with laser-like management discipline to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction," said Thomas M. Siebel, Chairman and Chief Executive Officer, C3 AI. The Company closed 22 agreements including with Heidelberg Materials, Ford Motor Company, Johnson & Johnson, Holcim, Seaspan, the U.S. Department of Agriculture, the Defense Logistics Agency, the U.S. Department of War and the U.S. Marine Corps, among others. Fiscal First Quarter 2027 Financial Highlights: Total Revenue was $52.4 million. Subscription Revenue was $49.2 million. Subscription revenue constituted 94% of total revenue. GAAP gross profit was $16.7 million, representing a 32% gross margin. Non-GAAP gross profit was $26.1 million, representing a 50% non-GAAP gross margin. GAAP net loss per share was $(0.60). Non-GAAP net loss per share was $(0.20). Net cash provided by operating activities was $2.1 million. Free Cash Flow was $2.1 million. Cash, cash equivalents, and marketable securities was $651.1 million. Financial Outlook: The Company’s guidance includes GAAP and non-GAAP financial measures. The following table summarizes C3 AI’s guidance for the second quarter of fiscal 2027 and full-year fiscal 2027: A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes. Conference Call Details Statement Regarding Use of Non-GAAP Financial Measures The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and non-GAAP expenses excludes the effect of restructuring expenses, stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods. Free cash flow. We believe free cash flow, a non-GAAP financial measure, is useful in evaluating liquidity and provides information to management and investors about our ability to fund future operating needs and strategic initiatives. We calculate free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. This non-GAAP financial measure may be different than similarly titled measures used by other companies. Additionally, the utility of free cash flow is further limited as it does not represent the total increase or decrease in our cash balances for a given period. We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release and in our press release dated June 3, 2026 for the reconciliation of GAAP to non-GAAP financial measures. Other Information Professional Services Revenue Our professional services revenue includes service fees and prioritized engineering services. Service fees include revenue from services such as consulting, training, and paid implementation services. Prioritized engineering services are undertaken when a customer requests that we accelerate the design, development, and delivery of software features and functions that are planned in our future product roadmap. When we agree to this, we negotiate an agreed upon fee to accelerate the development of the software. When the software feature is delivered, it becomes integrated to our core product offering, is available to all subscribers of the underlying software product, and enhances the operation of that product going forward. Such prioritized engineering services result in production-level computer software – compiled code that enhances the functionality of our production products – which is available for our customers to use over the life of their software licenses. Per Accounting Standards Codification (ASC) 606, Prioritized engineering services revenue is recognized as professional services over the period in which the software development is completed. Total professional services revenue consists of: Use of Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "on track," "positioned," "will" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our restructuring plan and the reorganization of our sales, services, and products organizations, our market leadership position, anticipated benefits from our partnerships, our financial outlook for the second quarter of fiscal 2027 and full 2027 fiscal year, our ability to successfully implement a turnaround in our business, our ability to grow revenue, generate cash, attain Non-GAAP profitability, maintain technology leadership, and increase customer satisfaction, our sales and customer opportunity pipeline, including continued growth in the Federal market, the expected benefits of our offerings, and our business strategies, plans, and objectives for future operations. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including our history of losses and ability to achieve and maintain profitability in the future, our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, the ability of our restructured global sales and services organization to achieve desired productivity levels in a reasonable period of time, the impact of return of Tom Siebel as our Chief Executive Officer, and our ability to retain key members of our senior management, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycles and the time and expense required for our sales efforts. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2026, and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Quarterly Report on Form 10-Q that will be filed for the fiscal quarter ended July 31, 2026, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations. About C3.ai, Inc. C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 Agentic AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, C3 AI applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise. Reconciliation of free cash flow to the GAAP measure of net cash provided by (used in) operating activities: The following table below provides a reconciliation of free cash flow to the GAAP measure of net cash provided by (used in) operating activities for the periods presented: View source version on businesswire.com: https://www.businesswire.com/news/home/20260902624813/en/ Contacts Investor Contact [email protected] C3 AI Public Relations AxicomMindy [email protected]

Interested in C3.ai, Inc.? Here are five stocks we like better. C3.ai reported $52.4 million in fiscal Q1 2027 revenue, exceeding prior guidance, while bookings rose 73% and federal bookings increased 138% year over year. The company closed 22 enterprise agreements across commercial and government customers. Restructuring improved operating efficiency, with non-GAAP gross margin rising to 50%, expenses falling nearly $40 million year over year and free cash flow turning positive at $2.1 million. The program is expected to deliver approximately $135 million in annualized cost savings but includes an estimated 40% workforce reduction. Management forecast fiscal Q2 revenue of $51 million to $55 million and full-year revenue of $210 million to $240 million. CEO Tom Siebel said the turnaround will focus on consistent revenue growth, positive operating cash flow and eventual non-GAAP profitability, supported by the company’s agentic AI products and federal-sector opportunities. C3.ai's Options Anomaly: A Squeeze in the Making? C3.ai (NYSE:AI) reported first-quarter fiscal 2027 revenue of $52.4 million, above its prior guidance, as the enterprise AI software company said its restructuring efforts, federal-sector momentum and product focus helped improve operating efficiency. The quarter ended July 31, 2026. Chairman and Chief Executive Officer Tom Siebel, who said he returned to the CEO role three months earlier with a mandate to turn around the business, characterized the company’s prior challenges as execution-related rather than stemming from its technology, market opportunity or balance sheet. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? Is C3.ai Stock Ready to Burn the Bears? “One quarter into the turnaround, I believe the company is on track,” Siebel said. He said the company restructured its sales, product and services organizations, reset its cost structure and established clearer ownership, deadlines and weekly operating reviews. Chief Financial Officer Hitesh Lath said subscription revenue totaled $49.2 million, or 94% of total revenue. Professional services revenue was $3.2 million, including $1.8 million from prioritized engineering services. Combined subscription and prioritized engineering services revenue was $50.9 million, representing 97% of total revenue. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings Top 5 MarketRank™ Stocks Backed by Analysts and Big Institutions Siebel said bookings grew 73% during the quarter, while federal bookings increased 138% year over year. The company closed 22 enterprise agreements, including agreements with Heidelberg Materials, Johnson & Johnson, Ford Motor Company, Seaspan, Holcim, the U.S. Department of Defense, the Defense Logistics Agency and the U.S. Department of Agriculture. Non-GAAP gross profit was $26.1 million. Non-GAAP gross margin improved sequentially to 50% from 37% in the prior quarter. Non-GAAP operating loss was $36.2 million, $8.3 million better than the midpoint of guidance. Non-GAAP net loss was $30.7 million, or $0.20 per share. Free cash flow was positive $2.1 million, compared with negative $34.3 million a year earlier and negative $54.8 million in the prior quarter. Lath attributed the improvement in gross margin primarily to cost-reduction actions. He said free cash flow benefited from lower quarterly cash expenses and strong collections. The company ended the quarter with $651.1 million in cash equivalents and marketable securities. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season The company said its restructuring is nearly complete and is expected to produce about $135 million in annualized cost savings across the business. The program includes an approximately 40% reduction in headcount across organizations, as well as lower non-employee expenses. Non-GAAP expenses totaled $88.5 million, down nearly $40 million from $128.1 million in the year-ago quarter and down more than $17 million from the preceding quarter, Lath said. Some of the savings are expected to be fully realized beginning in the second half of fiscal 2027. The company expects non-GAAP gross margin to moderate to the mid-40% range next quarter as it selectively invests in a forward-deployed engineering organization. Siebel said C3 AI has maintained forward-deployed engineers for years and plans to increase near-term investment to help existing customers achieve their desired deployment outcomes. He added that the company expects its C3 Code product to mitigate the need for such engineering resources over the medium and long term. Siebel said C3 AI is concentrating its offerings around its agentic AI stack, including the C3 Agentic AI Platform, C3 Generative AI, C3 AI Studio and C3 Code. He described C3 AI Studio as a control plane for developing and operating large-scale enterprise AI applications, while C3 Code is intended to create enterprise AI applications from natural-language prompts. According to Siebel, C3 Code can aggregate data, build ontologies and pipelines, develop machine-learning models, design a user interface and deliver a working application without manual coding. He said the product remains in the early stages of marketing, but early users have responded favorably. Siebel also said the company’s strategy is shifting from selling large enterprise AI applications built on its platform toward making application components available for reassembly on demand through the platform or C3 Code. In the federal market, Siebel said the company sees opportunity both in greenfield projects and in replacing incumbent providers. He cited dissatisfaction among some customers with an unnamed incumbent’s products and business practices, while also pointing to government spending on AI-related technologies in intelligence and defense sectors. For the second quarter of fiscal 2027, C3 AI forecast revenue of $51 million to $55 million and a non-GAAP loss from operations of $34.5 million to $42.5 million. For the full fiscal year, the company guided for revenue of $210 million to $240 million and a non-GAAP operating loss of $123 million to $155 million. Lath said the company expects free cash flow for the remainder of fiscal 2027 to broadly align with its non-GAAP operating-loss guidance range. Siebel said his primary focus is on establishing consistent quarter-over-quarter revenue growth beginning in the third quarter, generating free cash flow from operations and reaching non-GAAP profitability. “We’re not going to ask the market to underwrite a story,” he said. “Our plan is to deliver results quarter over quarter and let those results speak for themselves.” C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company's core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions. The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "C3.ai Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

SAIC (SAIC) came out with quarterly earnings of $3.01 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $3.63 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.78%. A quarter ago, it was expected that this information technology company would post earnings of $2.26 per share when it actually produced earnings of $3.23, delivering a surprise of +42.92%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. SAIC, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.88 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 7.52%. This compares to year-ago revenues of $1.77 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SAIC shares have added about 25.1% since the beginning of the year versus the S&P 500's gain of 12.7%. While SAIC has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SAIC was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $1.81 billion in revenues for the coming quarter and $10.01 on $7.16 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, C3.ai, Inc. (AI), has yet to report results for the quarter ended July 2026. The results are expected to be released on September 2. This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +29.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. C3.ai, Inc.'s revenues are expected to be $51.46 million, down 26.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Science Applications International Corporation (SAIC) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The upcoming report from C3.ai, Inc. (AI) is expected to reveal quarterly loss of -$0.26 per share, indicating an increase of 29.7% compared to the year-ago period. Analysts forecast revenues of $51.46 million, representing a decline of 26.8% year over year. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. That said, let's delve into the average estimates of some C3.ai metrics that Wall Street analysts commonly model and monitor. Analysts forecast 'Revenue- Professional services' to reach $3.07 million. The estimate indicates a year-over-year change of -69.2%. Analysts' assessment points toward 'Revenue- Subscription' reaching $48.28 million. The estimate indicates a change of -19.9% from the prior-year quarter. The consensus estimate for 'Gross margin- Professional services' stands at 51.7%. Compared to the present estimate, the company reported 77.0% in the same quarter last year. Analysts expect 'Gross margin- Subscription' to come in at 27.9%. Compared to the current estimate, the company reported 31.0% in the same quarter of the previous year. View all Key Company Metrics for C3.ai here>>> Shares of C3.ai have experienced a change of +13.9% in the past month compared to the +4.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), AI is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C3.ai, Inc. (AI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UiPath (PATH) surged 8% and Pegasystems (PEGA) gained 5% Thursday despite neither company reporting earnings, driven entirely by sector momentum. Salesforce (CRM) beat revenue, raised full-year guidance, and launched ClaudeForce with Anthropic, jumping 10% and lifting the software ETF IGV 3%. C3.ai reports September 2 and UiPath reports September 3, giving investors the first hard earnings test of whether this sector re-rating survives. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. Software's post-earnings bid is broadening past the names that actually reported. UiPath (NYSE:PATH) stock is up 9% to $18.20 in Thursday morning trading, and Pegasystems (NASDAQ:PEGA) stock is up 4% to $35.29. Neither company reported this week, which makes the size of both moves the interesting part. There's no verified company-specific catalyst behind UiPath stock today. UiPath did issue a Thursday morning press release announcing that CEO Daniel Dines has published a book on orchestrating AI agents, automation, and people inside the enterprise, but a book announcement carries too little weight to explain a move of this size. The mechanism that does hold up is sector momentum from Wednesday's software earnings, plus an oversold-name bounce in the beaten-down agentic-AI cohort. The broader software complex is riding the same wave. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 3% to $105.19, while the Invesco QQQ Trust (NASDAQ:QQQ) is up 1% to $718.40, a much tamer move that pins this rally to software rather than large-cap tech in general. Salesforce (NYSE:CRM) reported fiscal Q2 2027 after Wednesday's close, beat on revenue, raised its full-year guide, and announced an expanded partnership with Anthropic tied to a new product the two are calling ClaudeForce. Salesforce stock is up 10% to $226.80 on the results, and that report is the origin of Thursday's software bid. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. The read-through matters for automation and agentic-AI vendors because Salesforce management framed enterprise AI as an orchestration problem sitting on top of trusted data, workflows, business rules, and governance. That's essentially the pitch UiPath and Pegasystems have been making to their own customers, which is why the bid is spilling into non-reporters that fit the same theme. When the largest enterprise software vendor validates that framing on an earnings call and raises guidance behind it, the market tends to reward every name that maps to the same idea. The common thread across today's software winners is that they are beaten-down agentic-AI names catching a lift on someone else's results. Also, C3.ai (NYSE:AI) stock is up 5% to $10.23, another oversold enterprise-AI name that did not report and had no fresh company-specific news of its own on the wires this morning. Underlying setups vary materially by name. UiPath stock was up 44% over the past month through Wednesday's close, so Thursday's session is compounding an existing recovery in a name that had already gone from left-for-dead to one of the sharper software rebounds of the summer. Pegasystems stock was down 43% year to date through Wednesday's close, so today's bid there looks more like an oversold reaction to a friendlier sector narrative than a fundamental re-rating driven by anything the company itself said or did. A one-year picture reinforces the divergence. UiPath stock was up 55% over the trailing year through Wednesday's close, while Pegasystems stock was down 35% over the same window. Both are up meaningfully Thursday for reasons that live outside their own fundamentals, which is what makes today a sector re-rating rather than a stock-picker's session. Positioning ahead of UiPath's September earnings report is a plausible contributing factor rather than a confirmed cause. Dines has been telegraphing UiPath's positioning in agentic AI for months, writing in his new book that the real project "is producing a governed description of how the business actually works — the map — and the machinery that executes stable parts exactly — the rails." That framing dovetails cleanly with what Salesforce told the market on Wednesday. Investors can watch for whether today's gains hold into Thursday's close and whether sell-side desks publish read-through notes lifting price targets on UiPath and Pegasystems on the back of the Salesforce results. A follow-through session in the IGV ETF would confirm this is a genuine sector re-rating rather than a one-day chase. UiPath is scheduled to report fiscal Q2 2027 results after the close on September 3, which is where the first fundamental confirmation of today's move will arrive. Pegasystems reports in late October, giving that name a longer runway before its own catalyst arrives. C3.ai reports on September 2, and its response will be the cleanest early test of whether this rally survives a real earnings check. A cautious position size may be warranted given that Thursday's move rests on someone else's numbers. Rallies built on read-through can unwind on read-through when the next earnings check arrives, and investors sizing their exposure into next week's PATH and AI reports should weigh the strong monthly momentum already in the chart against the absence of a company-specific catalyst today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Serve Robotics Inc. SERV reported weak second-quarter 2026 results on Aug. 6, with both earnings and revenues missing the Zacks Consensus Estimate by 15.9% and 8.5%, respectively. The company’s loss widened year over year, while revenues increased sharply from the prior-year quarter. Shares of Serve Robotics have declined 17.8% since the earnings release, reflecting negative investor sentiment toward the weaker-than-expected results and reduced 2026 revenue guidance. Loss per share stood at 80 cents, compared with 36 cents in the prior-year quarter, while revenues of $3.24 million increased 404.4% year over year. Fleet services revenues rose 598.5%, while software services revenues increased 199%. Daily active robots averaged 792 during the quarter, up 395% from the prior-year quarter.Furthermore, Serve Robotics lowered its 2026 revenue guidance, reflecting a weaker outlook for the year. The company also reduced its non-GAAP operating expense outlook as part of its efforts to align costs with the revised plan. (read more: SERV Q2 Loss Wider Than Expected, Revenues Increase Y/Y, Stock Down)Shares of Serve Robotics have tumbled 55% year to date (“YTD”), underperforming the Zacks Computers - IT Services industry, the broader Zacks Computer and Technology sector and the S&P 500 Index, as shown in the chart below. Image Source: Zacks Investment Research Let us take a closer look at the factors weighing on Serve Robotics’ prospects. Serve Robotics’ revised 2026 revenue outlook remains a key concern for the stock. The company lowered its revenue guidance to $9-$10 million from $26 million previously, after the delivery volume growth expected in the second half failed to materialize. The change also reflects the decline in delivery volumes during the second quarter, making the revised outlook a more important measure of near-term revenue visibility.The Uber partnership adds to the uncertainty. Delivery volumes through Uber declined during the second quarter after growing for 17 consecutive quarters. Serve Robotics attributed the change mainly to differences in the operating model and integration between the two companies. The company currently does not expect to renew the agreement after it expires in early 2027 unless the operating model improves. This could put greater importance on other delivery channels and direct merchant opportunities.Profitability remains another challenge as the company continues to invest in its robotics platform. The company reported a gross loss of about $8.8 million in the second quarter, while non-GAAP operating expenses stood at about $40.4 million. Although Serve Robotics is tightening spending, stronger robot utilization and revenue growth will remain important for improving the financial model. SERV stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 13.31, as evidenced by the chart below. Image Source: Zacks Investment Research Serve Robotics’ bottom-line estimates for 2026 and 2027 indicate losses per share of $2.71 and $2.22, respectively, which have widened over the past 30 days. The revised estimated figures for 2026 imply a year-over-year decline of 66.3%, while the same for 2027 indicates growth of 18.2%. Image Source: Zacks Investment Research Despite the near-term challenges, Serve Robotics is making progress in broadening its business beyond food delivery. Software and recurring revenues are expanding, while hospital robotics is adding a more stable revenue stream. The company is also seeing traction with other delivery channels, including DoorDash, and is pursuing new partnerships and direct merchant relationships. Continued investments in autonomy, artificial intelligence and fleet capabilities, along with a broader commercial footprint, could create additional opportunities for revenue growth and improve robot utilization over time.Let us take a closer look at the factors shaping Serve Robotics stock’s prospects. Serve Robotics is broadening its revenue base across delivery, advertising and hospital robotics, reducing reliance on a single channel. Software revenues were nearly $1 million in the second quarter, while recurring revenues accounted for more than 50% of total revenues. The healthcare business is also generating contracted, multi-year revenues at attractive margins.The broader mix is creating multiple monetization opportunities beyond food delivery. Advertising is contributing a meaningful share of robotic food delivery revenues, while hospital robotics adds a recurring revenue stream. This diversification could improve revenue quality and provide greater stability as the company expands its robotics platform. Serve Robotics is expanding its delivery network through additional marketplace partnerships as it seeks to improve robot utilization. Deliveries through DoorDash grew nearly 50% sequentially in the quarter, while the company expects to announce another major delivery marketplace partner. New commercial programs are also being developed to support denser order allocation and higher utilization.A broader partner base could reduce reliance on individual delivery platforms and allow the company to deploy its existing fleet across more demand channels. The focus on higher utilization and better unit economics could also improve the value generated from each robot as the network expands. Serve Robotics is working to reduce merchant integration barriers that have limited access to its robotic delivery network. The company is developing Beacon, a standalone device that can connect restaurants directly with Serve Robotics without relying on existing internet or point-of-sale systems.This could allow the company to work with more restaurants, including merchants that are not connected to third-party delivery platforms. Easier integration could expand direct merchant access and create more opportunities to improve robot utilization across the existing fleet. Although Serve Robotics, C3.ai, Inc. AI, NVIDIA Corporation NVDA and Symbotic Inc. SYM all operate within the automation industry, their business models are very different. C3.ai provides enterprise AI software for commercial and government organizations, while NVIDIA provides AI computing infrastructure and software for AI and robotics applications. Symbotic focuses on large-scale warehouse automation for retailers and distributors. Serve Robotics, on the other hand, is building autonomous robots for last-mile delivery while expanding into healthcare robotics, giving it exposure to multiple real-world service applications.What sets Serve Robotics apart is that its technology is already operating at commercial scale on public streets. A growing fleet integrated with Uber Eats and DoorDash allows the company to collect real-world operating data, improve autonomous performance and increase fleet utilization over time. This creates advantages that differ from C3.ai's enterprise software business and NVIDIA's broader AI infrastructure position. At the same time, Symbotic holds a stronger position in warehouse automation, supported by a large deployment pipeline, recurring software revenues, a sizable backlog and established customer relationships.Overall, Serve Robotics stands out as a differentiated player in autonomous delivery with an expanding presence in service robotics. While Symbotic remains the leader in warehouse automation because of its scale and financial strength, Serve Robotics offers more direct exposure to autonomous delivery than C3.ai and NVIDIA through its commercial fleet, strategic partnerships and growing real-world robotics platform. Serve Robotics faces several near-term challenges, including the sharp reduction in 2026 revenue guidance, lower delivery volumes and widening losses. The premium valuation and continued earnings losses also limit the near-term upside potential.At the same time, software and recurring revenues are expanding, while hospital robotics and new delivery partnerships are broadening the business. DoorDash growth and the Beacon device could further improve fleet utilization and expand merchant access. Given the mixed outlook, the Zacks Rank #3 (Hold) appears appropriate as investors await clearer signs of stronger utilization, revenue growth and profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Serve Robotics Inc. (SERV) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Symbotic Inc. (SYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SOUN has fallen 55% over 12 months despite Q2 revenue beating consensus by 45%, as investors penalize cash burn and dilution risk. Peers CRNC and AI both declined sharply over 12 months but neither matches SOUN's 70% consensus upside or H.C. Wainwright's $20 Street-high target. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) SoundHound AI (NASDAQ:SOUN) currently trades at $7.48, while the average Wall Street price target sits at $12.71, an implied gap of 69.92% between current price and analyst consensus. SoundHound builds independent voice and agentic AI software deployed across automotive, healthcare, restaurants, and financial services. Wall Street is watching because the top line compounds fast while losses narrow, and the pending LivePerson acquisition could reshape the revenue base heading into 2027. One prominent analyst carries the Street-high target of $20, implying roughly 167% upside from here. SoundHound has lost 54.67% over the past year. Shares traded as high as $22.17 in the last 52 weeks before drifting toward single digits. The selloff came despite strong results. Q2 FY2026 revenue of $61.9 million came in 45.02% ahead of the prior year and beat the $52.4 million consensus. Investors punished the story for cash burn and dilution risk: cash slipped from $248.5M to $202.8M over six months, stock-based comp ran at $21.5M in the quarter, and contingent acquisition liabilities of $83.6M loom over the share count. The pain was company-specific. The S&P 500 rose 20.62% over the same 12-month window while SOUN lost more than half its value. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Analysts have refused to blink because the operating story keeps beating models. Of the analysts tracked, six rate SOUN a Buy and two rate it Hold, with no Sell ratings. Full-year 2026 revenue guidance was raised to $230 million to $260 million, and combined 2027 revenue with LivePerson is projected at $350 million to $400 million minimum. H.C. Wainwright's bull case sits at the top of the range. The firm highlights rapid drive-thru monetization at Church's Texas Chicken, Torchy's Tacos, and White Castle, expansion into Vision AI and the Agentic+ platform, and cross-selling voice into the Amelia and LivePerson customer bases. Operational leverage is expected to push SoundHound toward adjusted EBITDA break-even by late 2026 or 2027, backed by a debt-free balance sheet. CEO Keyvan Mohajer told investors that "our pipeline has never been this big, and our win rate has never been this good," citing an eight-figure commitment signed in less than 90 days from demo to contract. With Gartner projecting agentic AI software spending near $1 trillion by 2030, the analyst view is that SoundHound is early in a category it helped define. Recent revisions have leaned reiteration and upgrade, not downgrade. The broader enterprise and voice AI cohort is soft, but SOUN's 12-month drop is the steepest of the closest comparables. Cerence (NASDAQ:CRNC), the closest voice-in-vehicle competitor, trades at $8.61 against a consensus target of $10.75, roughly 25% upside. It has fallen 36.32% over the past year. The rating slate skews Hold at one Buy and four Holds. C3.ai (NYSE:AI) sits at $10.18 with a consensus target of $8.82, meaning analysts collectively see downside from here. Shares are off 45.27% over 12 months, and the rating mix is bearish at one Buy, seven Holds, three Sells, and three Strong Sells following downgrades tied to restructuring under returning CEO Tom Siebel. BigBear.ai (NYSE:BBAI) trades at $3.34 with a consensus target of $4.00, about 20% upside. The stock is down 42.51% on the year, with one Buy and two Holds and no meaningful upgrade momentum. The largest analyst-implied upside across the group belongs to SoundHound at 69.92% on consensus, and 167% on the Street-high case. SOUN trades at $7.48 with an average analyst target of $12.71, implying 69.92% upside. Coverage is concentrated among eight analysts, with six Buy ratings and two Hold, and no Sells. Year to date, SOUN is off 24.97%, while the S&P 500 is up 14.07%. Recent trading has been firmer, with the stock up 11.81% over the past month following the Q2 report. Reddit sentiment around the earnings release ran very bullish at 82, and insider activity is net buying with 17 recent transactions. The bull case strengthens if the LivePerson deal closes cleanly and combined 2027 revenue arrives at the $350 million to $400 million range with gross margin marching back toward the 70% level the CFO explicitly targets. The path to consensus $12.71 runs through EBITDA break-even, continued 40%-plus revenue growth, and OASIS wins that convert eight-figure demos into signed contracts. Scott Buck's $20 target stops looking like a stretch if that happens. The bear case takes hold if cash burn chews through the $202.8 million war chest faster than losses narrow, if $21.5 million quarterly stock comp turns growth into permanent dilution, or if LivePerson integration surfaces execution risk. A high beta of 2.83 means the round trip could hurt. The peer group offers less upside on worse fundamentals, the consensus gap is real, and the operating trajectory is trending the right way. This is a high-volatility bet on execution rather than a safe compounder, and position sizing matters more than conviction here. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.